- EUR/JPY trades at 158.22, up 0.02%, after US inflation data suggests the Fed may hold off on a rate hike.
- Ichimoku Cloud indicates an upward bias, but price action suggests the pair is in consolidation.
- Hourly chart shows a potential double top around 158.60; a break below 158.00 could confirm the bearish pattern.
The EUR/JPY clings to minuscule gains after reaching a two-week high of 158.65, following the release of US inflation data, which was mixed and cemented the US central bank case to skip a rate hike. The cross-currency pair changes hands at 158.22, climbing 0.02%.
EUR/JPY Price Analysis: Technical outlook
According to the Ichimoku Cloud (Kumo), the pair is upward biased, but the space contraction between price action and the Kumo suggests the EUR/JPY is consolidating. From a price action standpoint, the cross is neutral to downward biased, unable to crack the latest swing low of 156.58. Once done, the bias would shift to a downward bias, yet it needs to clear the Kumo.
Short term, the EUR/JPY hourly chart portrays the formation of a double top, as the pair peaked at around the 158.60 area. To confirm its validity, sellers must break the last lower low at 158.00. Once cleared, the next support would be the Senko-span A at 157.91, followed by the 157.83 swing low. The double-top measured profit objective would be the bottom of the Kumo at 157.40.
EUR/JPY Price Action – Hourly chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD hangs near multi-year low as traders await US NFP report
AUD/USD consolidates just above its lowest level since October 2022 as traders move to the sidelines ahead of Friday's release of the closely-watched US NFP report. In the meantime, rising bets for an early RBA rate cut, China's economic woes, US-China trade war fears, geopolitical risks and a softer risk tone act as a headwind for the Aussie.
USD/JPY bulls turn cautious near multi-month peak ahead of US NFP
USD/JPY moves little following the release of household spending data from Japan and remains close to a multi-month top amid wavering BoJ rate hike expectations. Furthermore, the recent widening of the US-Japan yield differential, bolstered by the Fed's hawkish shift, undermines the lower-yielding JPY and acts as a tailwind for the currency pair amid a bullish USD.
Gold price consolidates below multi-week top; looks to US NFP for fresh impetus
Gold price enters a bullish consolidation phase below a four-week top touched on Thursday as bulls await the US NFP report before placing fresh bets. In the meantime, geopolitical risks, trade war fears and a weaker risk tone might continue to act as a tailwind for the safe-haven XAU/USD.
Ripple's XRP plunges over 4% following funding rates decline
Ripple's XRP declined 4% on Friday following a decline in its funding rates. The remittance-based token could decline to test the $2.17 support level if the crypto market decline extends.
How to trade NFP, one of the most volatile events Premium
NFP is the acronym for Nonfarm Payrolls, arguably the most important economic data release in the world. The indicator, which provides a comprehensive snapshot of the health of the US labor market, is typically published on the first Friday of each month.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.